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Agreement will require Scuderi Group to begin selling electricity to the country of Mexico

June 20, 2014

Scuderi Group, Inc. announced the signing of a Power Purchasing Agreement (PPA) with Mexico City-based developer and gaming company AHIS in an effort to lower the electrical costs by up to 20% at 13 of its properties. This contract also enables Scuderi Group to be given authorization to generate electricity for the Mexican power grid.

According to the agreement, Scuderi Group will build the necessary power generation and energy storage units to be installed at 13 of AHIS' casinos located in Mexico City and other resort locations, which currently house an average of 350 machines each as well as sports/race betting and bingo. The deal will also require Scuderi Group to begin selling electricity to the country of Mexico since Mexican law mandates that any power generation taking place privately must also sell at least the same amount to the regional grid. This opens up major growth opportunities for Scuderi Group.

The Scuderi Split-Cycle Engine incorporates a unique and highly efficient power generation and compressed air energy storage capability that combines the energy of the high-pressure compressed air with the kinetic energy of the fuel to create a significant efficiency gain. When applied to properties with large power demands, the system has the capability to reduce electricity consumption up to 20 percent.

AHIS is a leading gaming company in Mexico since 1993, currently operating 13 casinos around the country with an additional 29 operations in development.

"We are very pleased to advance this project with AHIS to the PPA stage, which brings us closer to seeing the first installations of the Scuderi technology in Mexico take place," said Sal Scuderi, president of Scuderi Group. "Not only do we look forward to seeing our systems at work saving significant energy, we are also excited to begin contributing electricity to the Mexican grid and helping it to meet its power demands. This is another important milestone for Scuderi Group. "

After finalizing the extensive review and evaluation of current and future energy usage at the sites, Scuderi Group will begin designing and building 13 natural gas-powered electrical generators with CAES capability that will be sized and optimized according to each building's specific requirements. The first systems are expected to be up and running next year.

The Scuderi engine provides a major advantage when generating power over conventional generators. By utilizing the compressed air storage capability, the Scuderi engine can capture energy produced via the grid, wind, solar and other sources. Energy can then be provided on demand to users less expensively when power is in high demand. The system also increases the reliability and capacity of solar and wind farms so energy does not go to waste in off-peak hours. Because of the unique combustion process, the compressed air energy storage tanks require far less space than conventional compressed air energy storage systems.

About Scuderi Group

Scuderi Group, Inc., is an engine development company that has advanced the design of the internal combustion engine through its split-cycle engine technology known as the SCUDERI(TM) Engine. Through its Engine Development and Power Generation/Energy Storage engineering efforts, the company has discovered new ways that split-cycle thermodynamics can increase fuel efficiency and reduce emissions beyond what conventional engines achieve today. Additionally, the Scuderi Engine provides the manufacturability and power density required by the world's largest engine manufacturers without the use of exotic parts or changes to the conventional engine block. Scuderi Group holds a patent portfolio that contains more than 500 patents filed and over 200 patents issued worldwide. Scuderi Group is headquartered in West Springfield, Mass., USA, with offices in Frankfurt, Germany and Nagoya, Japan. For more information, visit www.ScuderiGroup.com.

About AHIS Corp.

AHIS Corp. is a gaming and development company based in Mexico City with over 20 years of experience in managing and developing gaming operations in the region. AHIS currently operates 13 casinos with an additional 29 in development. The mission of AHIS is to leverage its multidisciplinary management and operations expertise in the industry to offer customers the most trusted and professional gaming experience possible.